Sectoral Banking Mutual Fund:If you want to take advantage of the growth of the banking sector, you can opt for banking mutual funds. Sectoral banking mutual funds are sector funds whose asset allocation is mostly done in the stocks of Indian banks. There are many banking funds in the market which have a long history of giving high returns to investors. One of the oldest schemes in this is Nippon India Banking & Financial Services Fund. This fund is 21 years old and during this time it has proved to be a return machine for them.
LIC MF SIP: LIC introduced 3 schemes 30 years ago, those who deposited only 2000 rupees monthly got 50 to 60 lakh rupees
SIP Return Calculation
Nippon India Banking & Financial Services Fund has SIP return data for 21 years. This fund has given 18.27 percent annualized return to those who did SIP. In this sense, if someone had done a monthly SIP of Rs 5000 with an upfront investment of Rs 1 lakh in this fund, then the value of his investment would have now increased to Rs 1,52,38,876.
Monthly SIP: Rs 5000
Upfront investment: Rs 1 lakh
Duration : 21 years
Total investment in 21 years: Rs 13,60,000
Value of SIP after 21 years: Rs 1,52,38,876
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Lump Sum Return Calculator
This fund was launched on 26 May 2003. Since its launch, i.e. in 21 years, the return of this fund has been 21 percent annually. In this sense, if someone has invested 1 lakh rupees in it, then its value has increased to Rs 54,76,370. That is, this fund has given about 55 times return to those who invest long term.
About the Scheme
Launch Date : 26 May 2003
Returns since launch: 21% p.a.
Minimum Lump Sum Investment: Rs 5,000
Minimum SIP: Rs 100
Total Assets: Rs 6,138 crore (31 August, 2024)
Expense Ratio: 1.88% (August 31, 2024)
LIC Best Scheme: 7 schemes of LIC giving 50 to 74% return in 1 year, giving competition to the stock market
Stocks in the portfolio
HDFC Bank
ICICI Bank
Axis Bank
IndusInd Bank
Kotak Bank
SBI
Mutual Fund SIP: 5 schemes with highest returns, Rs 10,000 monthly SIP turned into Rs 1 crore, 20 to 22% annual growth in 15 years
Benefits of Sectoral Banking Mutual Funds
Sectoral banking mutual funds are sector funds whose asset allocation is mostly in the stocks of Indian banks. The banking sector is very important for the country’s economy, hence this sector remains in the focus of the government. When this sector performs well, banking funds are expected to perform well and beat the benchmark. By investing in these funds, you can invest in a strong portfolio of banking securities.
By investing in sectoral banking funds, you get the opportunity to invest in the stocks of top Indian banks. By investing in them, you can beat the benchmark and earn high returns. Banking funds are a better option for your long term financial planning.
(Source: Value Research, Amfi)
(Note: Here we have only given information about the returns of mutual fund schemes. This is not an investment advice. There are risks in the market, so take investment decisions only after consulting an advisor.)
